Mortgages - What are the fees and costs?
Buying a house is an expensive project, but the costs involved in getting a mortgage need not be.
All mortgage related fees which you'll have to pay will be set out clearly. But this won't include other costs such as stamp duty or your conveyancing fees, so use the table below to see what else you might have to pay.
Adding fees to the mortgage
Often you can add certain fees charged by the broker and lender to the mortgage. This can help with the initial cost of the mortgage but will cost you more in the long run as you will pay interest on the fees. If you want to do this ask your lender or broker to give you a KFI on this basis or if they have already done that, ask for one where the fees are not added.
Incentives
Lenders sometimes offer incentives which reduce the cost to you of taking out the mortgage. This can range from a free valuation or legal fees paid to a small or large cashback. If you want to pay off your mortgage early, you may have to pay back the value of these.
What will you have to pay? (these will be shown in the key facts illustration)
Fee or charge
|
What for?
|
How much?
|
Mortgage broker fee
|
For arranging the mortgage or providing you with advice. |
Depends on broker; they might get commission from the lender but some charge a fee say, for advice. |
| Mortgage booking fee or mortgage arrangement fee |
A commitment or administration fee usually payable to the lender to reserve the mortgage funds. |
Varies but typically 175.53 -877.65. |
| Valuation fee |
To assess that the property is appropriate security for the mortgage. |
Depends on lender and value of property. |
| Higher lending charge |
To get insurance cover in case you don't pay the mortgage, and they repossess your home and have to sell it at a loss. |
Depends on how much you borrow and the size of your deposit. |
| Fee to insure your property |
If you do not insure your property through the lender. |
Typically 44.00 but may be payable yearly or each time you change insurer. |
| Telegraphic transfer |
For your solicitor if you've arranged to transfer the mortgage funds electronically the same day. |
Typically 71.00-87.77.
|
| Re-inspection fee |
If the lender needs to re-inspect the property after the original valuation, usually to check if you've made agreed repairs. |
Typically 87.77-175.53.
|
| Early repayment charge |
If you repay your mortgage early. |
Depends on the terms and conditions of your mortgage and the size of your loan. |
| Fees to repay the mortgage |
For your lender when you repay your mortgage. |
Typically 131.65-351.06 as-well as any early repayment charge. |
Insurance checklist
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